Inventory Management and Optimization Research- APAC Derivative
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Key Takeaways
⇨ Inventory management challenges and supply chain risks are growing exponentially as businesses try to manage the complexities presented by globalization.
⇨ SAPinsider surveyed businesses and supply chain professionals within the SAP technology community on inventory management and optimization aspects from September 2022 to November 2022. Twenty-five percent of respondents to the survey were from the APAC region.
⇨ APAC respondents are more focused on building agility and efficieny as compared to the global view, which placer a higher emphasis on resiliency.
APAC respondents are more focused on efficiency and agility
Inventory management challenges and supply chain risks are growing exponentially as businesses try to manage the complexities presented by globalization. These challenges surface in unprecedented fluctuations in demand and supply, inventory policies and delivery systems diversity, and geopolitical and regulatory changes. These have only intensified during the pandemic. Unsurprisingly, in SAPinsiders’s recent research, Supply Chain Planning in The Cloud, inventory management and optimization emerged as the key focus area for organizations for the next two years. SAPinsider surveyed businesses and supply chain professionals within the SAP technology community on inventory management and optimization aspects from September 2022 to November 2022. Since 25 percent of respondents to the survey were from the APAC region, we decided to explore the insights from this region separately.
Though the challenges with the supply chains and the current portfolio of inventory management and optimization solutions do not differ much, the capability perspectives for APAC respondents differ from the global view. APAC respondents are more focused on building agility vs. resiliency regarding inventory management, as shown in figure 1. One of the reasons behind this is that since most of the respondents work for companies with either local or APAC manufacturing footprint and cater to local markets, the probability of disruption and risks is relatively lower. Hence, APAC respondents ranked the need to manage the massive data generated higher than the need for supply chain resiliency.
Source: SAPinsider December 2022
The top bottleneck with the current portfolio identified by APAC respondents was the lack of integration with other business applications. From a supply chain agility perspective, this makes sense since process synchronization and orchestration across the end-to-end supply chain are critical to developing agile and flexible supply chain processes. However, when it comes to implementing technologies to attain these. objectives, the top challenge that SAPinsiders face is the lack of internal skilled resources to help implement these technologies.
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